What Debts will go away with Chapter 7 Bankruptcy?
If you meet certain requirements, Chapter 7 bankruptcy is a powerful tool that will relieve you from unsecured debts and provide you with a fresh financial start.
What are examples of Unsecured Debts?
- Credit card expenses
- Medical bills
- Personal Loans
- Utility Bills (past due amounts)
- Repossession balances
- Foreclosure balances
But not all unsecured debts can be discharged. Unpaid child support, student loans, and taxes within the past three years are types of debts that cannot be eliminated through bankruptcy. These distinctions can be complex, so it’s important to discuss disability with Attorney Wendi.
What about Secured Debt (cars and mortgages)?
Secured debt for mortgage payments and vehicle payments can be reaffirmed (kept) in most cases, through your Chapter 7. Every client has different circumstances. In some cases it makes the best financial sense for our clients to surrender a vehicle due to high mileage, poor repair or negative equity. In other instances reaffirming a mortgage or car payment can help credit scores bounce back faster after their bankruptcy.
During your free consultation, you will meet with Atty Wendi, never a paralegal, and she will discuss your options in depth so that you can make an informed decision for your situation.
How Long Will My Chapter 7 Bankruptcy Case Take?
For our clients who are struggling with debt and are constantly being bombarded with creditor collection efforts and communications, it is not uncommon for a person to desire relief as quickly as possible. Fortunately, as far as legal procedures go, Chapter 7 is a relatively quick process.
On average, a Chapter 7 bankruptcy will take between four and six months from the time you file to the time you receive your discharge. There are certain circumstances, however, that may increase the time it takes to complete your bankruptcy.
What are the Benefits to Filing Chapter 7 Bankruptcy?
When you file for Chapter 7 bankruptcy, there’s no obligation that you repay qualifying debts. Eligible debts are wiped fully clean. There is no repayment!
Prior to filing a bankruptcy, creditors are allowed to reach out to inquire about your payment every day of the week and at any hour. It can get overwhelming if you have multiple accounts that you are struggling to pay! However, as soon as your Chapter 7 bankruptcy is filed, an automatic stay puts an immediate stop to all of the harassing phone calls.
Once your case is filed and the automatic stay goes into effect, all garnishments against you cease immediately.
The discharge of debts occurs quickly. In a typical case, the discharge of debt may occur in as little as three months. Approximately 90 days after the debtor files for bankruptcy, the court will issue a discharge order
Can Bankruptcy Help Me if I’m Behind on My Car Payments?
If you are behind on your car payments due to financial difficulties, all is not lost. You may be able to remedy this and save your vehicle from repossession with a Chapter 7 bankruptcy plan.
First, you need to answer some very important questions, such as:
- What are your goals for your vehicle(s)?
- Do you want to keep your car and continue payments?
- Do you want to get out from under a large payment?
- Do you want to trade in your vehicle for one with a more affordable payment?
- Is the creditor threatening to repossess your vehicle?
If you are close to a repossession, you will want to act quickly to avoid creditor actions. During a bankruptcy, many of your assets are protected under certain exemptions. Call today to arrange your free consultation with a knowledgeable, experienced bankruptcy attorney, Wendi Henderhan. She will provide you with advice specific for your situation. Don’t delay! Avoid creditor actions now.
Will I Be Able to Get Another Car if I file Bankruptcy?
Often people think bankruptcy will hurt their credit so much that they will never again be able to get a car loan or other credit. Fortunately, that’s not the case. Many people emerge from bankruptcy and are able to finance a car. Be aware, however, that you’ll likely pay high interest and fees.
Can they take my house if I file Bankruptcy?
There are exemptions for both Chapter 7 and Chapter 13 bankruptcy that can help you keep the home you live in and protect any home equity. Called Homestead Exemptions, most people qualify for these exemptions provided that the property is their primary residence.
These exemptions have been established to help you keep your property during a bankruptcy. You can meet with our experienced bankruptcy Attorney Wendi Henderhan to discuss important questions and determine your goals concerning your property.
If you have fallen behind on your house payment, you may be able to catch up with a bankruptcy plan. If you are close to a foreclosure situation, you will want to act quickly to keep your property and avoid bank actions. When you meet with Attorney Wendi Henderhan, she will provide you with specific advice and recommendations for your situation. Don’t delay—call today for your free consultation.
Can a business File for Chapter 7 Bankruptcy? What if I’m a sole-proprietor?
Both businesses and individuals can file for Chapter 7 bankruptcy protection, however when a business files for this form of bankruptcy, the business must be winding down, closed or willing to turn over operation of the business to the Chapter 7 Trustee.
If you own a business or operate as a sole-proprietor it’s important that you seek experienced legal advice. Deciding to close a business is never easy, but Attorney Wendi has handled multiple sole proprietor/small business bankruptcies and can provide you with answers.
Will filing Bankruptcy Hurt My Credit?
Yes and no. While a bankruptcy will show up on your credit report for 10 years, chances are without filing for bankruptcy you will be in an even worse situation for the next 10 years. In most situations where someone is exploring bankruptcy, his or her credit is already severely damaged.
Bankruptcy will allow you to start fresh and begin rebuilding your credit by taking small steps such as opening up a secured credit card account, building a savings account and taking out loans. Under typical circumstances, as long as you are employed, you may be able to obtain an auto loan immediately after filing your case (no need to wait for discharge) and at least two years to obtain a mortgage or refinance. Lots of old misconceptions exist online and by word-of-mouth. Attorney Henderhan’s experience will help you to make a good decision when considering bankruptcy. Call for a free initial consultation.